Convergent Outsourcing $2.45M Data Breach Settlement

Convergent Outsourcing has agreed to pay $2,450,000 to settle a class action lawsuit for alleged unauthorized access to their computer systems, which compromised personal information. This settlement aims to compensate individuals whose personal data may have been exposed during the incident.

Who Benefits?: Individuals who were notified that their personal information may have been compromised as a result of the data incident.

How much can I get?: Eligible individuals can receive up to $1,500 for documented ordinary losses, up to $300 for attested time spent, and up to $10,000 for documented extraordinary losses. Alternatively, they can opt for a pro rata payment from the net Settlement Fund.

Important Dates

• Deadline to File a Claim: June 19, 2024
• Final Approval Hearing: July 19, 2024

Can I Claim an Award?

If you were notified by Convergent Outsourcing, Inc. that your personal information may have been compromised due to a data incident discovered on or around June 17, 2022, you are eligible to claim an award. This includes all individuals residing in the United States who received such notification.

The class action settlement covers individuals whose names, contact information, financial account numbers, and Social Security numbers may have been accessed during the incident. If you fall within this group, you are considered a Settlement Class Member and can file a claim for compensation.

What Awards Can I Claim?

Settlement Class Members can claim various types of awards based on their losses and time spent addressing the data incident.

Eligible individuals can receive compensation for:

• Documented Ordinary Losses: Up to $1,500 for documented out-of-pocket expenses related to the data incident, such as unreimbursed losses from fraud or identity theft, credit monitoring costs, and other related expenses.
• Attested Time Spent: Up to 10 hours of lost time at a rate of $30 per hour, for a maximum of $300, for time spent remedying issues related to the data incident.
• Documented Extraordinary Losses: Up to $10,000 for extraordinary losses resulting from the data incident, provided the losses are documented, unreimbursed, and reasonably related to the incident.
• Alternative Cash Payment: A pro rata payment from the net Settlement Fund, which may vary depending on the number of claims filed.

Is Proof Required to Claim the Reward?

Yes, proof is required to claim certain types of awards. For documented ordinary losses and extraordinary losses, you must provide supporting documentation such as receipts or other non-self-prepared documents. For attested time spent, no additional documentation is required other than a description of your actions.

• Documented Ordinary Losses: Receipts or other documentation not self-prepared by the claimant.
• Attested Time Spent: No additional documentation required.
• Documented Extraordinary Losses: Supporting documentation of the loss and a description of how the loss is related to the data incident.

How to Claim Your Award

To claim your award, you must submit a valid Claim Form by June 19, 2024. You can submit your claim online at or mail it to the Claims Administrator at the address provided on the form. The quickest way to submit a Claim Form is online.

If your contact information changes after submitting a claim, you must inform the Claims Administrator by calling 1-877-564-1209 or writing to the provided address.

$2,450,000 Settlement Fund

The settlement amount is $2,450,000, which will be used to cover the costs of the settlement, including notice and claims administration, attorneys’ fees and expenses, service awards to the Representative Plaintiffs, and payments for claims for ordinary losses, attested time spent, and extraordinary losses.

The attorneys’ fees and expenses are capped at $661,500, and service awards of up to $1,500 each will be provided to the Representative Plaintiffs. The remaining amount will be distributed among eligible claimants.

What Led to the Lawsuit?

The settlement pertains to a data incident involving Convergent Outsourcing, Inc., a third-party debt collection company. The incident occurred on or around June 17, 2022, when an unauthorized individual accessed Convergent's computer systems and deployed tools to encrypt the systems and access certain personally identifiable information.

What Led to the Settlement?

By settling the lawsuit, Convergent is not admitting any wrongdoing or liability. The settlement aims to provide compensation to affected individuals and resolve the legal claims without the need for a trial. The Court will hold a Final Approval Hearing on July 19, 2024, to determine whether the settlement is fair, reasonable, and adequate.